Home-buying momentum in Canada continues to rise with the proportion of Canadians who are very likely to purchase a home in the next two years rising to 10% from 7% two years ago, according to RBC's annual home ownership study.
Younger Canadians aged 18 to 24 are the most likely considering to buy a home in the next 24 months with 15% seriously considering a purchase, up from 8% last year.
Of those who intend to buy a home, 44% plan to take a fixed-rate mortgage, although a greater proportion of people are intending to take a blended variable and fixed-rate mortgage.
About 70% of Canadians planning to take a fixed-rate mortgage or combination mortgage plan to take a term of five years or longer. Only 16% said they plan to take a variable-rate mortgage, down from 20% in 2009.
Home buying intentions were bolstered by the feeling of 91% of Canadians who said owning a home remains a good investment.
Home builders in B.C. are tapping this increased interest, with housing starts in Metro Vancouver doubling in February to 1,402 units from 701 units in the same month in 2009, according to the Canada Mortgage and Housing Corporation.
The bulk of the increase was in Vancouver, rising to 615 units from 363 and in Surrey, rising to 299 from 54. Richmond, Coquitlam and Langley also reported significant increases. Burnaby was the only city to report a decline in unit starts to 33 from 146 last February.